Start A Gluten Free Bakery - Business Ideas

Updated: September 15th, 2022
Start A Gluten Free Bakery

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Gluten is a protein found in some grains such as wheat and barley, and it's responsible for binding bread, retaining moisture, and providing baked foods with a soft texture.

With the rising consumer interest in gluten-free products, the category has transitioned to a mainstream market segment.

Gluten-free pastries contain flour from gluten-free grains like brown rice, buckwheat, and sorghum. If you are interested in bakery business ideas, you may consider venturing into the gluten-free pastries market.

Starting a gluten-free bakery requires a great deal of effort, dedication, and most importantly passion.

If you're interested in how to sell gluten free bakery, or selling gluten free bakery online, you can use this page as a guide for everything you'll need to know.

Want to learn more? You can check out our full guide on how to start a gluten-free bakery ➜

Key Stats

revenue (monthly)
$90K
starting costs
$53.3K
gross margin
56%
avg product price
$2
time to build
180 days
growth
Email marketing
business model
E-Commerce
time investment
Full time

Startup Costs

Min Startup Costs Max Startup Costs

Office Space Expenses

$0

$7,000

Employee & Freelancer Expenses

$151

$352

Website Costs

$223

$7,215

Business Formation Fees

$5,600

$20,400

Equipment & Supply Expenses

$66

$700

Retail Business Expenses

$1,250

$11,650

Inventory Expenses

$350

$14,750

Food Business Expenses

$2,125

$36,000

Software Expenses

$162

$3,094

Advertising & Marketing Costs

$75

$5,286

Total Startup Costs

$10,002

$106,447

Successful Businesses

Business URL Rank

Bakery

bakeryandsnacks.com

299,200

Katz Gluten Free

katzglutenfree.com

369,757

ChipMonk Baking

chipmonkbaking.com

777,130

gfco.org

gfco.org

1,012,477

Pastreez

pastreez.com

1,029,048

Pastreez

pastreez.com

1,029,048

BeeFree Gluten-Free Bakery

beefreegf.com

1,714,042

Sensitive Sweets Bakery

sensitivesweets.com

1,904,757

Glutino

glutino.com

2,129,672

Sami's Bakery

samisbakery.com

2,157,908

Newgrains

newgrains.com

2,325,190

Pros & Cons

Pros Description

Flexibility

You can put as much time into the business as you'd like. If you like the work and have some initial experience, you can start small and manage all aspects of the business on your own.

Ability to start your business from home

It's not necessary to have a physical storefront or office space to get your business started. You can do everything from the comfort of your own home, at least in the beginning!

Scalable

With businesses and processes changing daily, there will always be demand for new features, products and services for your business. Additionally, there are several different business models and pricing tiers you can implement that will allow you to reach all types of customers.

Meaningful business connections

You never know who you will meet as a gluten-free bakery. This could be the start of an incredible business opportunity!

High customer retention rates

Once a customer invests in your product, they've invested their time and energy to utilize your product/service which is highly valuable to them. Typically, your product or service becomes indispensable to your customer.

High margins

The gross margins for your gluten-free bakery are typically around 56%, which is considerably high and allows you to grow your business and manage costs easily.

Cons Description

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

Longer Sales Process

A gluten-free bakery can be a big time and money investment for your customer, so it's important you plan and predict a longer conversion funnel and stay in communication with potential customers.

High employee turnover

In the gluten-free bakery, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Taxes

As a gluten-free bakery, you typically pay self-employment taxes which can be quite high. It's important to understand what you will be paying in taxes each year so you can determine if the work you're taking on is worth it.

High overhead expenses

With starting a gluten-free bakery, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

You may need to charge sales tax

If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article

Marketing Ideas

  • 1

    Word of mouth

    Word of mouth is when a consumers reflects their interest in a company’s product or service in their daily dialogues.

    Therefore, word of mouth advertising is essentially a free advertising triggered by the customers experience.

    According to Nielsen, 92% of people trust recommendations from friends and family.

    Therefore, in today’s hyper-connected world, a single recommendation through a word of mouth can have a huge impact to your business.

    Learn more about word of mouth ➜

  • 2

    Social Media Advertising

    Social media advertising is the use of social media platforms to connect with your audience with the objective to build your brand, increase sales, and drive website traffic.

    According to Oberlo, approximately 48% of the global population use social media, and the number is ever-growing.

    Therefore, social media allows brands access to cost-effective advertising by enabling them to interact with a large audience.

    Learn more about social media advertising ➜

  • 3

    Pay Per Click Advertising

    Pay-per-click (PPC) is a performance-based marketing method that allows you to show specific ads for services or products oriented to a very defined target, with the goal that the user visits your website or landing page.